The incompetence of government authorities and bureaucrats around the world continues to surprise me as renewable energy subsidies keep going haywire. The script followed is the same in all the bust countries but others fail to learn from them and keep making those mistakes. Spain was the first country to witness a massive renewable energy […]
Solar Boom in Romania Solar booms inspired by large solar subsidies are a regular feature in the solar industry. The story line is the same where clueless bureaucrats set high feed in tariff rates for solar energy which leads to a massive influx of solar developers and solar panel producer from China. This leads to […]
The relentless rise of Chinese telecom equipment and OEM companies has massacared telecom jobs in the West with major companies like Nokia, Alcatel and others firing in the thousands. Note Huawei and ZTE have become the nemisis of the telecom equipment makers which are showing losses in the last few years. These companies are not managing to compete with the low cost engineer advantage of the Chinese firms . Nokia is also firing thousands in its western factories in Poland and other places as it moves production to Asian factories. Note while Nokia has become unprofitable to other causes like Apple and Android, low cost phones from Asia is the biggest factor in its demise as well.
Apple recently reported astounding financial results in which profits grew by an awe inspiring 50% on a huge basis with Net Profits Margin of 30% which is crazy for a company of Apple’s size. It generates massive cash flows and has over $100 billion in its cash war chest. While there are a number of reasons which makes Apple one of the most successful and profitable companies in world history, the global oversupply of labor is one of the chief reasons which is overlooked at .
Financial Jobs are being let go in the tens of thousands by European and USA Financial Institutions. The Financial Industry has become too huge as a percentage of the global economy with any value creation to say something like the IT industry. The share of the market cap of the stock market had become too high during the boom boom years of 2008 and it is continuing to go down.Despite the best (some would say the worst) effort of the governments to prop up the Too Big to Fail Banks,jobs are being let go as there is not enough work. European Banks are shrinking their balance sheets as they are too leveraged and insolvent. Without the ECB crutch,almost all of them would go under.
Eastern Europe has seen a massive Green Energy Boom driven by EU 20% Renewable Energy by 2020 Target.Romania has been no exception to their Region Wide Green Growth.In fact Romania is said to have the best Wind Energy Sites in the whole of Europe with a 14 GW potential.The Government has attracted big Wind Developers like CEZ,E.ON and others through a generous Renewable Energy Certificate (REC) Scheme.Note the REC Subsidy Mechanism is a popular way of promoting Green Energy by making it mandatory for Utilities to procure a certain portion of their Energy Needs from Green Sources.They have to buy RECs from Trading Exchanges if they are unable to meet their targets.